An engineering college want to a $80,323 trust fund for course textbooks each semester during the regular school (two times a year). If the fund has a 5% nominal interest rate compounded biannually, how much must be in the fund to start to keep it going indefinitely?

 

Calculate the EUAW if you make a $6,741 capital expenditure that should make $2,683 per year over the next 7 years. Your investment's TVOM is 16%

 

A company wants to replace a current machine. It will cost $1,762,503, 6 years from now. If they save $8,847 a month in an account that gives them 0.61 per month, how much money will they still need to pay for the machine.

You win a cash prize worth $12,431 that you want to use to buy a new car, worth $42,252. How much will your payment be, per month, if the dealer gives you a 6.5% nominal interest rate for 50 months.

 

You want to borrow $10,512. You must repay the loan in 10 years in equal monthly payments and a single $4,069 payment at the end of 10 years. Interest rate is 12% nominal per year. 

What is the amount of each payment?

Answer rating: 100% (QA)

For the first question we can use the perpetuity formula to determine the amount needed in the trust ... View the full answer